Professional Documents
Culture Documents
● JURIDICAL NECESSITY
○ KELANGAN GAWIN
○ IF THE OBLIGATION IS BREACHED THERE WILL BE A LEGAL SANCTION
○ FOR CIVIL OBLIGATION ONLY?
KINDS OF OBLIGATION
● PERSONAL OBLIGATION
○ TO DO OR NOT TO DO
○ Rendering some service and act to be done and not to be done
● POSITIVE/AFFIRMATIVE OBLIGATION
○ TO GIVE OR TO DO
○ The essence of this is the affirmative action, ito ay ung action na tanggap sa
lipunan
● NEGATIVE OBLIGATION
○ NOT TO DO/ NOT TO GIVE
○ MGA ACTION NA AGAINST SA HUMAN LAWS OR MGA BAGAY NA HINDI
MAKAKATULONG SA IBANG TAO
● UNILATERAL
○ ISANG PARTY LANG ANG MAY OBLIGATION
○ EX. UMUTANG SI A KAY B, KAYA OBLIGATION NI A NA MAGBAYAD KAY B
● BILATERAL
○ BOTH PARTIES ANG INVOLVE DUN SA OBLIGATION
○ EX. BUMILI SI A KAY B NG ALAK WORTH 2K, OBLIGATION NI A NA
MAGBAYAD NG 2K THEN OBLIGATION NI B NA IDELIVER ANG ALAK KAY A
● INJURY
○ WRONGFUL ACT OR OMISSION NA NAGDUDULOT NG HARM
● DAMAGE
○ RESULTA NG INJURY
ARTICLE 1157: Obligation arises from - law; contracts; quasi-contracts; acts or omission
punished by law; quasi-delicts (SOURCES OF OBLIGATION)
● Quasi- Contracts
○ there is no contract pero nageexist sya dahil sa juridical relation resulting lawful,
voluntary and unilateral acts kahit walang malinaw na kasunduan
○ This is unilateral acts- one person lang ang may initaitive to do the act
○ Walang agreement, walang consent kaya sya quasi- contacts
ARTICLE 1158: Obligations from law are not presumed. Only those (1) expressly
determined in this code or (2) in special laws are demandable, and shall be regulated by
the precepts of the law which establishes them; and as to what has not been foreseen, by
the provisions of this code.
● If ang obligation ay hindi provided ng law or nakasulat sa civil code, ibig sabihin hindi
siya kailangan gawin or hindi siya valid, unless kasama siya sa special laws like penal
laws
● yung special laws kasi ay yung mga hindi nakalagay sa civil code, ang special laws ay
laws na ginawa sa specific events or situations.
● Hindi magaasume na may obligation unless sinabi sa batas na may obligation sadya
ARTICLE 1159: Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
-Syempre kung anong nakasaad sa kontrata yun ang gagawin ng both parties kasi yun nga
yung required bobo ka va?(forda bet!!!) Yun yung sinasabing compliance in good faith, bawal
mag insert ng conditions or other clauses kung hindi alam ng isa pang party kasi unauthorized
yun gurlllll (Falsification of a valid contract), yun lang tenkyowww
-sa mata ng batas, kapag void yung kontrata, walang kwenta yung mga nakalagay dun kasi
void nga meaning invalid!!!
ARTICLE 1161: Civil obligations arising from criminal offenses shall be governed by the
penal laws, subject to provisions of article 2177, and of pertinent provision of chapter 2,
Preliminary in human relations, and of title 18 of this book, regulating damages
● RESTITUTION
○ RESTORATION OF PROPERTY NA NAKUHA/ NANAKAW
○ IF POSSIBLE NA MA RETURN PWEDENG IRETURN
○ IF DI NA POSSIBLE NA MARETURN FAIR VALUE NA LANG NUNG THING
ANG BABAYARAN
● REPARATION
○ AMOUNT OF DAMAGE, PRICE OF A THING AND SENTIMENTAL VALUE
● INDEMNIFICATION
○ WILL PAY FOR THE OTHER DAMAGES SUFFERED
○ LOSS NA NAINCURE NUNG NANAKAWAN
● EX: NINAKAW NI A ANG LAPTOP NI B, TAPOS SA PAGTAKAS NITO SA PULIS
NALAGLAG DAHILAN NG PAGKASIRA, NUNG ARAW NA YON MAY MEETING SI A
SA POSSIBLE NA INVESTOR
○ RESTITUTION-LAPTOP
○ REPARATION- DAMAGE SA LAPTOP
○ INDEMNIFICATION- LOSS NA NAINCURE NI B DAHIL DI NIYA NAKUHA
YUNG POSSIBLE NA INVESTOR
● EFFECT OF ACQUITTAL(acquittal means hatol ng korte na hindi guilty ang ferson) IN
CRIMINAL CASE
○ DUE TO REASONABLE DOUBT (means hindi mapatunayan na guilty or factual
ang claims) - NO CIVIL LIABILITY
○ DUE TO EXEMPTING CIRCUMSTANCES (exempting circum. Ex. under age, or
baliw) - WITH CIVIL LIABILITY
○ PREPONDERANCE OF EVIDENCE (means matibay ang evidence, naol strong)-
WITH CIVIL LIABILITY
ARTICLE 1163: Every person obliged to give something is also obliged to take care of it
with proper diligence of a good father of a family, unless the law or the stipulation of the
parties requires another standard of care.
DUTIES OF DEBTOR
● Diligence of a Good Father- this is the standard care because a good father ay
hindi iniiwan ang kanyang pamilya
● Another standard of care- the extraordinary care is the highest standard care
● Factors to be considered- depends on the nature of obligation
ARTICLE 1164: The creditor has a right to the fruits of the thing from the time the
obligation to deliver it arises. However he shall acquire no real right over it until the same
has been delivered to him.
● May karapatan ang creditor na magdemand to deliver the fruits on time dahil obligasyon
ito ng debtor
● Ginawa itong law na ito para maprotektahan ang interest ng obligee para sa mga cause
of delay
● Kapag halimbawa bumili ng kabayo si A tas pinagbebenta na sa B tas nanganak iyun
pero di pa nababayaran kay A pa din ang favor nun kasi di pa paid at di pa nadedeliver
NOTE: if may nangyaring fortuitous event, : hindi na liable ang debtor if hindi nya naibigay ng
ayos ung bagay or loss ito
● ACCESSIONS
○ FRUIT OF THE THING
○ ADDITION SA PRINCIPAL
○ NATURALLY OR ARTIFICIALLY ATTACHED SA PRINCIPAL
○ EX: BIBILI KA NG ASO AND ANG USAPAN AY BUKAS PA KUKUNIN PERO
NANGANAK NA YUNG ASO NGAYON, ANG ACCESSIONS AY YUNG MGA
TUTA.
● ACCESSORIES
○ THINGS INCLUDED SA PRINCIPAL
○ EX: BUMILI KA NG CAR, ANG PRINCIPAL AY CAR ANG ACCESSORIES AY
SUSI, CAR COVER,ETC.
ARTICLE 1167: IF A PERSON OBLIGED TO DO SOMETHING FAILS TO DO IT, THE SAME
SHALL BE EXECUTED AT HIS COST. THE SAME RULE SHALL BE OBSERVED IF HE
DOES IT IN CONTRAVENTION OF THE TENOR OF THE OBLIGATION IT MAY BE
DECREED THAT WAS HAS BEEN POORLY DONE BE UNDONE
● This is obligation to do
ARTICLE 1168: WHEN THE OBLIGATION CONSIST IN NOT DOING AND THE OBLIGOR
DOES WHAT HAS BEEN FORBIDDEN HIM, IT SHALL ALSO BE UNDONE AT HIS
EXPENSE
● Obligation not to do
● Ginawa mo yung dapat na hindi gawin, kaya si debtor ay ibebear nya din ung mga
expenses
● EX: In a contract of lease of house, the lessee obligated himself not to make any
improvements without the consent of the lessor. In making improvements unilaterally,
the improvements may be undone at his expense in addition to damages.
ARTICLE 1169: Those obliged to deliver or to do something incur in delay from the
time the obligee judicially or extrajudicially demands from them the fulfillment of
their obligation.
However, the demand by the creditor shall not be necessary in order that delay
may exist:
(2) When from the nature and the circumstances of the obligation it appears that
the designation of the time when the thing is to be delivered or the service is to
be rendered was a controlling motive for the establishment of the contract; or
(3) When demand would be useless, as when the obligor has rendered it beyond
his power to perform.
In reciprocal obligations, neither party incurs in delay if the other does not
comply or is not ready to comply in a proper manner with what is incumbent
upon him. From the moment one of the parties fulfills his obligation, delay by the
other begins. (1100a)
THE DELAY THE OF THE OBLIGOR CANCELS THE DELAY OF OBLIGEE, VICE
VERSA
1. Kapag nakasaad ito sa obligasyon o sa batas.
2. Kapag ayon sa kallikasan ng obligasyon na ang pag tatakda ng oras ay ang nag
cocontrol na motibo ng pagtatala ng kontrata.
3. Kapag ang demand o paghingi ay walang bisa. Katulad ng pagkakataon na
naisakatuparan na ng obligor ang bagay na ito ng higit pa sa kakayahan nyang
Nomaikumpleto o maisakatuparan ito.
4. DELAY
a. Ordinary Delay –No demand, no delay- nakasulat o hindi basta
magdemand ang obligee, hindi delay
b. Legal Delay or default or mora –
is the failure to perform an obligation on time which failure, constitutes a
breach of the obligation.
- Dahil
1. Mora solvendi – the delay on the part of the debtor to fulfill his obligation
(to give or to do)
REQUISITES:
1. Kapag hindi nagawa ng obligor ang obligasyon on DATE agreed
2. Demand by the contract
3. Kapag di nagcomply sa demand
EFFECTS:
1. Debtor - liable for damages and interests
2. Debtor - liable for the loss of a thing due to a fortuitous event
KINDS:
1. Mora Solvendi ex re - default in real obligations (to give)
2. Mora Solvendi ex persona - default in personal obligation (to do)
2. Mora accipiendi – or the delay on the part of the creditor without justifiable
reason to accept the performance of the obligation
EFFECTS:
1. Creditor - liable for damages
2. Creditor - bears the risk of loss of the thing
3. Debtor - not liable for interest from the time of creditor’s delay
4. Debtor - release himself from the obligation
EFFECTS:
The default of one compensates the default of the other; their respective liabilities
shall be offset equitable.
Article 1170. Those who in the performance of their obligations are guilty of fraud,
negligence or delay and those who in any manner contravene the tenor thereof, are
liable for damages.
- pwedeng humingi ng for damages si creditor kapag nalaman niya na guilty si debtor for
fraud, negligence, or delay or kung merong hindi nasunod sa nagpag usapan
-liable for damages si debtor kapag nacommit niya ang mga ito:
- Fraud (pandaraya)
- Negligence (kapabayaan)
- Delay (pagkaantala)
- Contravention of terms of obligation ( hindi pagsunod sa nagpag usapan sang -ayon sa
agreement)
- it refers to incidental fraud na ginagamit sa pagfulfill ng isang obligasyon. Wlang bisa ang
waiver ng isang action para sa hinaharap (future fraud) na pandaraya dahil labag sa
patakaran at sa law. Tpos kapg waiver of action naman para sa past fraud ay valid dahil
ang waiver ay pedeng maconsidered na act of generosity at kagandahang loob ng taong
biktima ng fraud
INCIDENTAL FRAUD (applicable provisions are Arts. 1170 & 1344) - type ng fraud n
di sinasadya, natural na nangyayari
Ex: kapag ang demand na ideliver ni C kay D ay Coke, tapos ang dineliver naman ay
mountain dew, this cause fraud at liable sa damage si C
ex. Bumili si Jamie (sorry jamie, jessa here) ng alak tpos mali mali pala ung sinabi ng
magtitinda about sa alak . nagsinungaling sya para lng maibenta. Without the fraud, si jamie
ay would not have given his consent to the contract. si Jamie ay may karapatan n
magpawalang-bisa ng kontrata o ipagwalang bahala ang pandaraya.
Art. 1171
-ay abt fraud. Responsible si debtor from all obligations arising from fraud
(a) negligence depends upon the circumstances of a case – good or bad faith of the
obligor may be considered as well as the conduct or misconduct of the obligee; means ang
negligence ay nakasalalay sa circumstances ng isang kaso - mabuti o bad faith ng obligor
ay maaaring isaalang-alang pati na rin ang pag-uugali o maling pag-uugali ng obligee;
(b) it is not as serious as fraud - means hindi ito sadyang pandaraya
Culpa Aquiliana negligence between parties not so related by pre existing contract
Article 1173. The fault or negligence of the obligor consists in the omission of that
diligence which is required by the nature of the obligation and corresponds with the
circumstances of the persons, of the time and of the place... If the law or contract
does not state the diligence which is to be observed in the pe
rformance, that which is expected if a good father of a family shall be required.
- nirerequire ang diligence kapag may obligation kaya tinetest natin ang negligence to check
kung meron ba talagang inexercise na diligence.
- kapag ang negligence ay nag show ng bad faith = FRAUD
-para kang nangloko kapag mayroon kang kapabayan tapos you conducted it in Bad Faith o
sinsadya yung kapabayaan
-kapag in Bad Faith yung negligence, yung provision ng 1171 & paragraph 2 ng Art. 2201
ay dapat iapply.
Art. 1171
-ay abt fraud. Responsible si debtor from all obligations arising from fraud
USURY LAW – makes the usurers criminally liable if the interest charged on
loans are more that the limit prescribed by law.
• This law is repealed – Circular No. 905 of the Central Bank has
expressly removed the interest ceilings prescribed by the USURY LAW.
- interest ceilings ay yung limit
Kapag nagexceed ang amount dun sa interest limit ay against the law, sa madaling
salita ay kapag sobra ang patong na nilagay sa interest ni Creditor
ARTICLE 1176. The receipt of the principal by the creditor without reservation
with respect to the interest, shall give rise to the presumption that
said interest has been paid.
kung ang creditor ay tinanggap nya ang principal tapos walang objection or question kung
saan ang bayad para sa interest, then it will be assumed na ang interest ay already paid.
The receipt of a later installment of a debt without reservation as to prior installments, shall
likewise raise the presumption that such installments have been paid.
Si debtor ay umutang ng one million na babayadan in one month kay creditor then napag
kasunduan na may 6% interest. If nagbayad na si debtor then si creditor ay tinanggap lang
ang one million without questioning kung nasaan ang 6% interest, tinanggap lang walang
objection or question then there would be a preaumption na binayaran na ni debtor ang
interest but take note na presumption lang sya kaya duty ni creditor na magpakita ng
evidence na ang interest ay hindi pa bayad.
- These are mere presumptions.
- To be sure – write the interest and the dates covered by such payment
in the receipt
ARTICLE 1177: The creditors, after having pursued the property in possession of
the debtor to satisfy their claims, may exercise all the rights and bring all the
actions of the latter for the same purpose, save those which are inherent in his
person, they may also impugn the acts which the debtor may have done to
defraud them.
- It gives remedies to the creditors kung sakaling ang debtors ay nadelay or default
to perform his obligations.
ARTICLE 1178: Subject to the laws, all rights acquired in virtue of an obligation
are transmissible, if there has been no stipulation to the contrary.
- Pwedeng ipasa ang rights but merong exceptions
Exceptions:
a. Those not transmissible by their nature like purely personal rights
- Example: paintings
b. Those not transmissible by provision by law
- Kapag nakapaloob sa law na hindi pwedeng ipasa, kagaya sa
partnership, kunware namatay ang partner, magreresult sa
dissolution.
c. Those not transmissible by stipulation of parties.
- Kapag nasa agreement ng both parties na hindi pwedeng ipasa
ang rights.
ARTICLE 1179: Every obligation whose performance does not depend upon a future or
uncertain event, or upon a past event unknown to the parties, is demandable at once.
(yung mga obligation na hindi nakadepende sa future o sa mga hindi siguradong pangyayari na
hindi alam ng bawat isa ay dapat tuparin o gawin.)
Every obligation which contains a resolutory condition shall also be demandable,
without prejudice to the effects of the happening of the event.
(yung mga obligation naman na may resolutory condition, example ng resolutory condition ay
halimbawa bibili ka na ng lupa kung within one year ay magbayad ang may utang sayo, may
condition ganern, yung mga obligation na may ganon ay demandable rin kapag hindi isinaalang
alang ang epekto nito)
PURE OBLIGATION - an obligation which does not contain any condition or term upon which
the fulfillment is made to depend; immediately demandable by the creditors and the debtor
cannot be excused from not complying with his prestation.
(yung mga obligasyon na walang kondisyon or hadlang para mafulfill or magawa ito ay
maaaring idemand ng nagpautang at ang umutang ay hindi maeexcuse para hindi gawin ang
obligasyon niya) ex. Pinangakuan kang bibigyan ka ng Php 500, wala namang condition yon so
at imposible rin siyang mangyari kaya need ifulfill yung obligation na bigyan ka
(eto yung mga obligation na nakadepende sa future or mga hindi inaasahang pangyayari na
hindi alam ng both parties) ex. Makakapasa ka sa oblicon, pero hindi naman sure kasi
posibleng hindi ka rin pumasa, sa future pa mangyayari pero pwede rin namang posible siyang
mangyari
ARTICLE 1180: WHEN THE DEBTOR BINDS HIMSELF TO PAY WHEN HIS MEANS
PERMIT HIM TO DO SO, THE OBLIGATION SHALL BE DEEMED TO BE ONE WITH A
PERIOD, SUBJECT TO THE PROVISIONS OF ARTICLE 1197
● KAPAG FIXED NA SA CERTAIN PERIOD KUNG KELAN NANGAKONG
MABABAYARAN TAS KAPAG HINDI NABAYARAN WITHIN THAT PERIOD PUPUNTA
SA COURT PARA MA SETTLE YUNG MISMONG DATE KUNG KELAN
MAGBABAYARAN
● EX: UMUTANG SI A KAY B NG 1,000 AT NANGAKONG BABAYARAN ITO AS SOON
AS POSSIBLE PERO NAG FAIL SI A NA I FULFILL ANG OBLIGATION KAYA
LUMAPIT SA B SA COURT PARA MA SET YUNG MISMONG DATE KUNG KELAN
MAGBABAYARAN.
● PERIOD- TIME/DEADLINE KUNG HANGGANG KELAN BABAYARAN YUNG
OBLIGATION
ARTICLE 1182: When the Fulfillment of the condition depends upon the solve will
of the debtor, the conditional obligations shall be void. If it depends upon chance
or upon the will of a third party, the obligations shall take effect in conformity
with the provision of this code.
- Inaapply lamang kapag magririse ang obligation
- Kapag ang condition ay nakaayon lang sa kagustahn ng debtor invalid ang
condition
- Kapag naman may involve na 3rd party kelangan pag usapan ang rules and
standards ng contract
- Kapag may condition na ang parties, don palang pede magdemand ang creditor
at magobliged ang debtor
3 kinds of Conditions:
1. Potestative - one which depends upon the will of one of the contracting
parties
- may allotted time
- Ex, gagawa ng cabinet for 1 week
2. Casual - It is a condition given by chance (IF, IF EVER, etc)
- ex. ibibigay ko sayo ang lupa ko, kapag pumuti na ang uwak
3. Mixed - it is a will of the other contracting parties and other circumstances,
including the will of a third person
- Ex. kapag si anna ay humingi ng pabor kay jenna pero hihingi muna ng
permiso kay Janna
- Basta may involve na third person
Possible condition- ito yung kayang gawin and mangyari lang according to nature, law,
public policy or good customs.
Only the affected obligation is void, if the obligation is divisible, and the part
thereof not affected by the impossible condition is valid.
ARTICLE 1184. The condition that some event happen at a determinate time shall
extinguish the obligation as soon as the time expires or it has become
indubitable that the event will not take place.
- ipinapaliwanag nito ang positive condition
Positive Condition
-kelangan mangyari ang condition at a determinate time
POSITIVE = Suspensive Condition
-kapag hindi nangyari/naexpire maeextinguished na yung obligation
ARTICLE 1185: The condition that some event will not happen at a determinate time shall
render the obligation effective from the moment the time indicated has elapsed, or if it
has become evident that the event cannot occur.
If no time has been fixed, the condition shall be deemed fulfilled at such time as may
have probably been contemplated, bearing in mind the nature of the obligation.
- Negative condition
- Kapag hindi nangyari ang isang event at a determinate time or lumagpas, ang obligation
ay magiging effective.
● Ang kundisyon ay itinuturing na natupad kung ang obligor mismo ang pumipigil upang
mafulfill ito.
● Requisites with examples
1. The condition is Suspensive
Ex: si A ay bibigyan ng 10% commisson is B if mababenta ang lupa niya.
Nakakita ng bibili si B tapos si A upang maiwasan ang pagbabayad ng komisyon
na napagkasunduan ni B ay sya mismo ang nagbenta sa bumibili ng lupa sa mas
mababang presyo nang walang tulong ni B. Masasabing dahil sa pagganap ni Y
ng kanyang gawain, ang kondisyon para sa pagbabayad ng komisyon ay
sadyang pinigilan ng X at itinuring na natupad.
ARTICLE 1187: The effects of a conditional obligation to give, once the condition has
been fulfilled, shall retroact to the day of the constitution of the obligation. Nevertheless,
when the obligation imposes reciprocal prestations upon the parties, the fruits and
interests during the pendency of the condition shall be deemed to have been mutually
compensated. If the obligation is unilateral, the debtor shall appropriate the fruits and
interests received, unless from the nature and circumstances of the obligation it should
be inferred that the intention of the person constituting the same was different. In
obligations to do and not to do, the courts shall determine, in each case, the retroactive
effect of the condition that has been complied with.
ARTICLE 1188: The creditor may, before the fulfillment of the condition, bring the
appropriate actions for the preservation of his right. The debtor may recover what
during the same time he has paid by mistake in case of a suspensive condition.
Bago magawa ang condition, maaaring gumawa ng hakbang ang nagpautang para
maprotektahan ang kanyang karapatan. Pwedeng bawiin ng umutang ang binayad niya
kung may suspensive condition o pangyayari sa future o hindi inaasahang sitwasyon na
nakaapekto sa kasunduan.
ARTICLE 1189: When the conditions have been imposed with the intention of
suspending the efficacy of an obligation to give, the following rules shall be
observed in case of the improvement, loss or deterioration of the thing during the
pendency of the condition.
● LOSS
1. Kung ang bagay ay mawala na walang kasalanan ang may utang ang
pananagutan ay mawawala din.
2. Kung ang pagkawala ng bagay ay kasalanan ng may utang,
mananagot siya magbayad ng danyos at ipagpapalagay ang gayon
bagay ay hindi na muling mababawi pa.
● DETERIORATION
3. Kung ang bagay ay kumupas o sumama na, ang may utang ay
walang kasalanan, ang pagpapagawa o pagbabalik ng dating
kaanyoan ay sa sagutin ng nagpapautang.
4. Kung ang pagkupas o pagbaba ng halaga ay kagagawan o kasalanan
ng may pagkakautang ang nagpapautang ay magpapasiya upang
pawalan saysay/kansilahin ang obligasyon at pagsasakatuparan
noon na may kabayaran sa danyos alin man sa dalawa ang pipiliin
nya.
● IMPROVEMENT
5. Kung ang bagay ay umunlad ng natural o ng panahon, ang kaunlaran
ay sa pakinabang ng nagpapautang.
6. Kung ang pagunlad ay kagagawan ng may utang wala siyang
karapatan maliban sa karapatan ipinagkaloob ng usufructuary o pag
bibigay ng karapatan upang magamit ito.
ARTICLE 1190. When the conditions have for their purpose the extinguishment of an
obligation to give, the parties, upon the fulfillment of said conditions, shall return to each
other what they have received. In case of the loss, deterioration or improvement of the
thing, the provisions which, with respect to the debtor, are laid down in the preceding
article shall be applied to the party who is bound to return. As for the obligations to do
and not to do, the provisions of the second paragraph of Article 1187 shall be observed
as regards the effect of the extinguishment of the obligation.
ARTICLE 1191. The power to rescind obligations is implied in reciprocal ones, in case
one of the obligors should not comply with what is incumbent upon him.
The injured party may choose between the fulfillment and the recession of the obligation,
with the payment of damages in either case. He may also seek rescission, even after he
has chosen fulfillment, if the latter should become impossible.
The court shall decree the rescission claimed, unless there be just cause authorizing the
fixing of a period.
This is understood to be without prejudice to the rights of third persons who have
acquired the thing, in accordance with articles 1385 and 1388 and the mortgage law.
- Ang korte ang mag uutos ng pagpapawalang bisa na hinihingi maliban kung may
makatarungang dahilan para payagan ang pagtatakda ng tiyak ng panahon.
- Ito ay nauunawaan ng walang pinsala sa karapatan ng taong walang kinalaman na
siyang nakakuha ng pag mamay-ari ng bagay na naaayon sa Article 1385 at 1388 at
ng Mortgage Law.
• Applies only to reciprocal obligations where two parties are mutually debtor and
creditor of each other in the same transaction. The cause must be identical and the
obligations must arise simultaneously.
-naapply lamang sa reciprocal obligasyon kung saan ang dalawang party ay
may utang at pinagkakautangan ng isa't isa sa parehong transaksyon. Ang dahilan
dapat magkapareho at ang mga obligation ay dapat mag arise nang sabay-sabay.
• The party who can demand rescission should be the party who is ready, willing, and
able to comply with his own obligations while the other is not capable to perform his
own.
- Ang party na maaaring magdemand ng pagpapawalang bisa ay ang party
na ready, willing at kayang sumunod sa kanyang obligasyon habang ang iba ay hindi
kayang gawin ang kanyang obligation.
REMEDIES:
1. Specific performance or fulfillment of obligation with damages;
2. Rescission of contract with damages.
Effect of rescission: the parties must surrender whatever they have received from the
other, and the obligation to pay is extinguished.
Kapag parehas na party ang nag breach or hindi tumupad sa nakalagay sa contract,
yung unang hindi sumunod sa kontrata ang mananagot sa damage. Kapag hindi
matukoy kung sino ang naunang hindi sumunod, parehas na party ang
magkakaresponsibility sa kanikanilang damage.